APAC Morning Update - 24/02/21

The NZDUSD opens at 0.7337 and AUDUSD opens at 0.7905

The NZD takes a breath, or rather holds its breath going into today's RBNZ meeting. The cash rate decision and statement is at 2pm (NZST), followed by the press conference at 3pm (NZST). If there are going to be fireworks it will be at 2, but the press conference can still be market moving as it gives us the best insight into what they are thinking looking ahead.

Speaking of central banks, the Fed were out overnight with Powell testifying. The market was really on edge, especially tech stocks as yields are ticking higher, the expectation was that Powell would acknowledge that, and might even mention concerns about inflation. No such luck, he was very careful to say how low they will keep rates for a long time, and any inflation in the near future would be temporary and he is not worried about it. We think that will be the play book, no one will worry until it’s too late, but hey, let's worry about that later.

Global equity markets are mixed: Dow -0.1%, S&P 500 -0.3%, FTSE +0.1%, DAX -0.6%, CAC +0.2%, Nikkei +0.5%, Shanghai -0.2%.

Gold prices are off 0.3%, currently trading at $1,803 an ounce. WTI Crude Oil prices are up 0.2% trading at $61.8 a barrel

NZDUSD 0.7337 0.0%
NZDEUR 0.6038 0.1%
NZDGBP 0.5202 -0.2%
NZDJPY 77.22 0.2%
NZDAUD 0.9279 0.2%
NZDCAD 0.9247 0.0%
GBPNZD 1.9222 0.2%

AUDUSD 0.7905 -0.1%
AUDEUR 0.6506 -0.1%
AUDGBP 0.5606 -0.4%
AUDJPY 83.2 0.0%
AUDNZD 1.0775 -0.2%
GBPAUD 1.7838 0.4%